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Stable matching mechanisms are not obviously strategy-proof

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  • Ashlagi, Itai
  • Gonczarowski, Yannai A.

Abstract

Many two-sided matching markets, from labor markets to school choice programs, use a clearinghouse based on the applicant-proposing deferred acceptance algorithm, which is well known to be strategy-proof for the applicants. Nonetheless, a growing amount of empirical evidence reveals that applicants misrepresent their preferences when this mechanism is used. This paper shows that no mechanism that implements a stable matching is obviously strategy-proof for any side of the market, a stronger incentive property than strategy-proofness that was introduced by Li (2017). A stable mechanism that is obviously strategy-proof for applicants is introduced for the case in which agents on the other side have acyclical preferences.

Suggested Citation

  • Ashlagi, Itai & Gonczarowski, Yannai A., 2018. "Stable matching mechanisms are not obviously strategy-proof," Journal of Economic Theory, Elsevier, vol. 177(C), pages 405-425.
    • Handle: RePEc:eee:jetheo:v:177:y:2018:i:c:p:405-425
    DOI: 10.1016/j.jet.2018.07.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Stable matching; Obviously strategy-proof; Obvious strategy-proofness; Matching; Mechanism;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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